An American pizza chain has started paying its customers to not get their pizzas delivered to them, as a result of a national labor shortage. Instead, Domino’s will effectively pay them to pick up the food themselves.
In a statement Domino’s has announced that it will start tipping its customers $3 that can be used towards their next order if they pick up their pizzas from the stores.
“It takes skill to get pizza from a Domino’s store to your door,” said Art D’Elia, Domino’s executive president and chief marketing officer. “As a reward, Domino’s is giving a $3 tip to online carryout customers who take the time and energy out of their day to act as their own delivery drivers. After all, we think they deserve it.”
The $3 coupon code can be claimed by carryout customers who order online between now and 22 May 2022. Customers can then apply the code to an online carryout order placed the following week with a minimum purchase of $5 before tax and gratuity.
“Domino’s carryout tips come just in time for the biggest football game of the year, which is also one of the busiest days of the year for pizza,” said D’Elia, referring to the Super Bowl which will take place in three weeks.
In recent months, Domino’s earnings have taken a hit as a result of the pandemic and fewer workers. The pizza company’s same store sales in the US declined by 1.9% in the third quarter of 2021, marking the company’s first decline in a decade.
CEO Richard Allison attributed the shrinking sales to the nationwide worker shortage, which has largely led to insufficient delivery drivers for the company. The US is currently facing record resignations in its labor force, with 4.4 million workers or 3% of the country’s total workforce quitting in September 2021.
Two industries – accommodation and food services – have experienced the highest quit rates as a result of low pay and poor working conditions across the board. Because Domino’s does not use third-party delivery services such as Uber Eats or DoorDash, “staffing has been a challenge”, according to Allison.
Additionally, according to Domino’s corporate controller and treasurer, Jessica Parrish, the worker shortage has led to challenges in the company’s customer service division and has reduced operating hours, leading to fewer order counts.
Allison also said that the company plans to deal with “unexpected increases” in food prices, as the cost of ingredients increase from 8% to 10% compared to the previous year.
“We expected unprecedented increases in our food basket cost versus 2021 of 8-10%, which is three to four times what we would normally see in a year,” Allison said. “I think many of you are aware of the significant inflation across the US economy and how that is hitting many of the inputs that we have for our business from meats to cheese to some of the grains that go into the production of our products,” he added.
In another cost-saving move, Domino’s has reduced the amount of chicken wings it offers to customers, cutting the number from 10 pieces to eight.
